Innovation and branding are top priorities
Innovation and branding are important topics for all businesses today. Global studies conducted by BCG (1)
and IBM (2), for example, show that both multi-national corporations and medium-sized business regard innovation as a top priority. At the same time, the topic of branding is also of prime concern to CEOs. B2B companies are also increasingly recognizing the power of brands to differentiate products and services in the marketplace, cultivate customer loyalty and give companies an edge in the competitive market for qualified personnel.
Over the past few years, leading companies have made major changes in the way they manage the topics of innovation and branding. In both cases, the trend is toward a more process-oriented approach that is “open” in terms of themes and content:
| – | Whereas innovation used to be treated primarily as a research and development task focused on products, companies are now concentrating on open-innovation processes and are expanding their development processes to include additional services and new business models. Companies can become more agile by professionalizing their innovation management. |
| – | Similarly, the function of brands is shifting: Previously, companies used brands to indicate ownership and differentiate their offerings from others on the marketplace. Nowadays they are using brands to foster a deeper dialog with customers and business associates – for example, by creating interactive “brand portals” where customers can contribute their ideas for new or better products. |
In today’s world, brand managers must view their tasks within the context of innovation management. At the same time, companies must establish innovation management techniques that meets the challenge of exploiting the canalizing effects the brand can have on the development process. When companies concentrate on the interplay between innovation and branding, they can increase their impact on the marketplace and augment their success.
(1) http://www.bcg.com/: Innovation 2010: A Return to Prominence—and the Emergence of a New World Order
(2) http://www.ibm.com/: 2010 Chief Executive Officer Study: Capitalizing on Complexity